India’s households’ net financial savings plunged to a five-year low of Rs 14.2 trillion in FY23, sharply down from Rs 17.1 trillion in FY22, primarily owing to a sharp rise in short-term credit, data released by the statistics ministry showed on Monday. The fall could be attributed to “a lot more leveraged consumption and spending” due to greater and faster access to credit, economists said. As a percentage of GDP, however, the households’ net financial savings in FY23 was at 5.3%, the lowest in around five decades. Between FY12- FY22 (excluding FY21), the net financial savings hovered between 7-8%. The gross financial savings of households stood at Rs 29.7 trillion in FY23, while the financial liabilities stood at Rs 15.6 trillion.
Next up, industry. Arvind Panagariya, chairman of the 16th Finance Commission, stated that India’s Production Linked Incentives (PLIs) should not be equated with indiscriminate protection for domestic industry, especially if targeted at larger firms. He cautioned against focusing on import-substitution industries at the expense of competitive export industries, emphasizing the need for expansion into the global marketplace.
Godrej Consumer reported a surprise consolidated net loss of Rs 1,893 crore for the quarter ended March 31, 2024, due to exceptional items including losses on investments in Africa. The ongoing parliamentary elections may be the last one plagued by spam calls, as new rules under the Digital Personal Data Protection law are expected to put an end to such practices once the new government assumes office in June.
Telecom operators have submitted their applications for the upcoming spectrum auction, with no major bidding expected. The government is also planning to amend the Income Tax Act to comply with FATF guidelines on beneficial ownership of trusts. Stocks in focus today include Godrej Consumer, Lupin, Route Mobile, Wipro, Gujarat Gas, Bajaj FinServ, and Dr Reddy’s Lab, with notable financial performances reported.